Cummins Q1 2022 revenues rise 5%
By Mike Brezonick03 May 2022
Cummins Inc. reported first quarter 2022 revenues rose 5% from the same period last year, coming in at $6.4 billion for the period. Sales in North America increased 12% while international revenues decreased 3%, driven primarily by a slowdown in China.
“Demand for our products remains strong across many of our key markets and regions, resulting in record revenues in the first quarter of 2022,” said Chairman and CEO Tom Linebarger. “We have implemented pricing actions to counter rising input costs, which contributed to solid profitability in the first quarter. Supply chain constraints continue to be a challenge and are limiting growth in our industry.”
Net income attributable to Cummins in the first quarter was $418 million compared to $603 million in 2021. First quarter results include costs of $158 million related to the indefinite suspension of operations in Russia, and $17 million related to the separation of the Filtration business. Cummins said the costs incurred relating to the indefinite suspension of operations in Russia include inventory write-downs, reserves on accounts receivable, the impairment of a joint venture investment, and other costs.
Results by segment
Engine Segment sales were $2.8 billion, up 12%. On-highway revenues increased 14%, driven by pricing actions and strong demand in the North American truck markets, and recovery in the bus market which was severely impacted by COVID-19. Off-highway revenues increased 5%. Sales increased 15% in North America and 4% in international markets
Distribution Segment sales were $2.1 billion, up 15%. Revenues in North America increased 17% and international sales increased by 13%. Higher revenues were primarily driven by increased demand for parts and whole goods
Components Segment sales were down 8%, to $2.0 billion. Revenues in North America increased by 8% and international sales decreased by 21% due to lower demand in India and China from record demand in the first quarter of 2021.
Power Systems Segment sales were up 14% to $1.2 billion. Power generation revenues increased by 9%, driven by strong demand in China. Industrial revenues increased 21% due to stronger demand in mining and oil and gas markets,
New Power Segment sales fell 11% to $31 million. Revenues decreased due to timing of commissioning /electrolyzer projects and shipments of fuel cell systems to the rail market in 2021, the company said.
2022 outlook improves
Based on the current forecast, Cummins is raising its full year 2022 revenue guidance to up 8%, an increase from up 6%, due to stronger demand in North America and other markets.
“We delivered solid financial performance in the first quarter in the face of many challenges in our global supply chain,” said Cummins President and COO Jennifer Rumsey. “The ongoing impact of COVID-19, especially in China, and the effect of the conflict in Ukraine continue to present challenges to our global operations. I am impressed with the resiliency of our employees to navigate through these difficulties and deliver for our customers.”